R received a distribution with respect to his stock during the past year.He should treat the amount received

Question

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Distributions with respect to stock are generally treated first as a taxable dividend to the extent of the corporation's current and accumulated earnings and profits. Any distribution in excess of earnings and profits is then treated as a return of capital to the extent of the shareholder's basis in the stock, and finally, any remaining amount is treated as a gain from the sale or exchange of property.

R Received a Distribution with Respect to His Stock During